Glitch in Commercial Bank of Ethiopia System Enables Customers to Withdraw Millions

Ethiopia’s largest commercial bank is working urgently to recover significant amounts of money withdrawn by customers following a “systems glitch.” The glitch resulted in customers being able to withdraw large sums of money from their accounts, surpassing their actual balances. The bank is currently taking measures to rectify the situation and ensure that affected accounts are adjusted to reflect accurate balances.

On Saturday, customers of the Commercial Bank of Ethiopia (CBE) were met with an unexpected opportunity as they discovered a glitch in the system, allowing them to withdraw cash amounts exceeding their account balances. This glitch resulted in a significant sum of over $40 million (£31 million) being withdrawn or transferred to other banks, according to reports from local media outlets. The situation prompted the bank to take action, though it took several hours before transactions were finally frozen in response to the issue.

The significant portion of funds withdrawn from the state-owned Commercial Bank of Ethiopia (CBE) was reportedly attributed to students, as stated by bank president Abe Sano during a press briefing on Monday. The news of the glitch quickly disseminated across university campuses primarily through messaging apps and phone calls, sparking widespread interest among students. At many campus ATMs, long queues formed as individuals sought to withdraw money, with one student in western Ethiopia informing BBC Amharic that people continued to withdraw funds until police officers intervened to halt the activity.

The student, enrolled at Jimma University Institute of Technology, initially found it hard to believe when his friends informed him around 01:00 local time (22:00 GMT) that it was possible to withdraw significant sums from ATMs or transfer funds using the bank’s app. Similarly, another student at Dilla University in southern Ethiopia recounted that several of their peers withdrew money from CBE between midnight and 02:00 local time, reflecting the widespread awareness and activity surrounding the glitch.

With over 38 million account holders, the Commercial Bank of Ethiopia (CBE), established 82 years ago, is a significant institution in the country’s financial landscape. The country’s central bank, responsible for overseeing the financial sector, issued a statement on Sunday attributing the incident to a “glitch” that arose during “maintenance and inspection activities.” However, the statement primarily addressed the disrupted service following CBE’s decision to freeze all transactions, notably omitting any mention of the substantial sums withdrawn by customers during the incident.

While Mr. Sano did not provide specific figures regarding the amount withdrawn during Saturday’s incident, he reassured the public that the losses incurred were minimal when compared to the bank’s overall assets. Additionally, he emphasized that the Commercial Bank of Ethiopia (CBE) was not targeted by a cyber-attack and urged customers not to be concerned, as their personal accounts remained unaffected by the glitch.

At least three universities have issued statements urging students to return any funds they may have withdrawn from CBE that did not belong to them. Mr. Sano clarified that individuals returning the money would not face criminal charges. However, it remains unclear how successful the bank’s efforts to recover the funds have been thus far. While a student from Jimma University reported not hearing of anyone returning the money, he noted the presence of police vehicles on campus. Conversely, an official from Dilla University mentioned that bank employees were on campus collecting money that some students were returning voluntarily.